Technical Note On Managing Inventories Periodic Review System Case Study Solution & Analysis
Technical Note On Managing Inventories Periodic Review System Case Study Help (National Association for Stock Automobile Auto Racing) is an organization carrying out series of Stock Cars and truck racing in United States and serving as an approving body for driving the guidelines for Stock Car Racing. The company was founded in 1947, by "Huge Bill" France. NASCAR arrange Stock Car Racing events in United States with the existence of about 130000 viewers on average in 2005. It likewise transmitted its events in about 150 nations. Stock Vehicle Racing by NASCAR is the second largest spectator sport, with greatest variety of sponsors. It has about 500 sponsors contributing billions of dollars in its profits. The other sources of income for Technical Note On Managing Inventories Periodic Review System Case Study Solution consists of; 10% of the total income from television rights, sanctioning fees i.e. $1-2 million per race, and licencing NASCAR brand name to companies.
NASCAR has a closed corporate culture with the non-interventionist approach. The structure of Automobile of Tomorrow by NASCAR, with an intent of safety for the chauffeurs, brought various tensions among the stakeholders of the sport.
The interaction audit, performed in 2010, exposed that regardless of the reality that the business highly count on the communications between its stakeholders, there was no recognizable organisation interaction technique. The market's target clients, instructions and objectives were all unidentified.
The audit explained different lacking of NASCAR in terms of absence of internal combination, absence of fan management technique and lack of social and digital media of marketing. The company has complicated community with independent tracks, motorists and groups. This structure with closed business culture bring numerous challenges in speeding up a change. Other partners in ecosystem consists of the media networks i.e. television and radio, and business online marketers.
Technical Note On Managing Inventories Periodic Review System Case Study Analysis viewers was extremely faithful to the sport and the brand names related to the NASCAR, making it appealing for sponsors and business marketers.
The company is currently dealing with the problem of decreasing rates of attendance at racing tracks and rates of tv audiences. This can put a considerable influence on its incomes from sponsors, media rights, and from other sources of income.
The company was quite successful till 2005 with its conventional marketing techniques, but quickly after 2005 the company starts dealing with various issues consisting of decline of its fan base. A number of external as well as internal factors are accountable for the decrease. Internal aspects include; inadequate financial investment in social networks and other digital medias of.
Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their youngsters and produce generational commitment. Other challenges for NASCAR includes the shift of its fans to other sports as they were improving their fan's experience enabling access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, and so on.
In SWOT analysis, strengths defined as business's qualities which are various from its rivals. These are company's core competencies on which company performance or business success based on. Technical Note On Managing Inventories Periodic Review System Case Study Solution core proficiencies includes it has rights of determining rules as approving body. Rules and guidelines concerning professional stock automobile racing are dictated by NASCAR like if any team with required skills and resources can enter into races by following guidelines and regulations dictated by NASCAR. So NASCAR has monopoly it this element. Its strengths likewise includes that it has title of second largest spectator sport in the United States with having more fortune 500 sponsors based in US. Its races were utilized to relay in more than 150 nations all over the world with more than $56 million revenues. The primary sources of their earnings originate from television rights, approving fees, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 national series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise large resource of fans and corporate sponsors. All the events of NASCAR are sponsored by corporates because of greatest brand name commitment of fans toward brand names advertised by Technical Note On Managing Inventories Periodic Review System Case Study Solution. (See Appendix A).
Weaknesses in SWOT Analysis are thought about as external elements. Weak points consists of the factors that stops company to perform at required level of performance. Weak points of NASCAR includes its close culture which is non collaborative. They have non-interventionist method. They typically used to form guidelines and other required procedures without intervention of others which results in poor collaboration. NASCAR establishes Vehicle of Tomorrow without partnership so result is that motorists did not like that principle. As this is racing sport so covering of sports by media is also hard. It was also discovered that NASCAR had no reliable strategy for business communication. They don't understand how to deal with issue if it occurred off track. Inefficient business communication results in that they do not have clear direction for their long term goals. They don't know that where they want to see this sport in future.
NASCAR typically used to rely on standard media sources like regional newspaper for publicity of its sports. NASCAR likewise came to know from these traditional media outlets that sport was hard to cover. When sports fans were asked regarding popular celebs and stars then NASCAR chauffeur was not found even in top twenty actions.
Economic down turn was experienced in late 2000 which can be hazard for NASCAR since if there is financial down turn then people would be having less return on investment. Economic down turn likewise results in increase fuel costs which also affected NASCAR. Now if NASCAR make significant financial investments in brand-new sectors which are based on brand-new customers then it might deal with unfavorable comments from its core fan base.
Porter's 5 Forces Analysis
Porter's 5 forces is a design that is utilized to analyse industry in which company is working. It helps in identifying what are strengths and weakness of any specific market. It recommend that every market is different from one another. It is important to comprehend market in which business is working due to the fact that NASCAR's bottom line i.e. net revenue is heavily depends upon this. There are 5 forces that are utilized to determine profitability, strength and attractiveness of Technical Note On Managing Inventories Periodic Review System Case Study Help company.
This force shows ability of competitors. Groups usually represents sponsors in NASCAR and the medium of marketing is drivers. For that reason it can be stated that motorists and race automobiles are competitors. These chauffeurs can break NASCAR if they improved opportunity in terms of rewards and tv exposure. Then viewers can move to those other intriguing vehicles and chauffeurs, if viewers enjoy other race cars and trucks and drivers more than NASCAR. NASCAR might be having danger from its 2 direct competitors that is Solution 1 and Moto GP. They need to develop competitive benefits for motorists so they don't move to other rivals.
The provider power indicates the number of providers are readily available in market and what is the expense connected with supplier if business shifts from one supplier to another. In this industry there is supply monopoly since drivers with needed resources and abilities are limited.
In the case of NASCAR consumers are its viewers. Audiences can switch to other rivals easily since audiences will having low switching expense.
Hazard of Substitution
Replacements are referred as options. The alternatives in this case can be other entertainment indicates like audiences can move to other sports. There are large variety of replacements are offered in this circumstance which recommends that danger of replacement is high.
Hazard of New Entry
In the case of NASCAR hazard of brand-new entry is low. They need to build automobiles and racing tracks and also requires to pay hefty amount to drivers for switching.
As NASCAR is working in various markets so it needs to deal with different guidelines. It is likewise kept in mind that NASCAR has actually dealt with increased examination relating to regulative. Every federal government has various concern so NASCAR has actually to be prepared for it as concern can be moved to other sector.
Financial aspects consists of tax rate, exchange rate, financial performance of that specific company, conditions of labour market, inflation rate etc. Fortunes of the NASCAR and its competitors can be impacted if there is government intervention in the marketing and sales sector. NASCAR can utilize abilities of staff members to produce brand-new opportunities and enhance existing opportunities.
Each has different social worths and norms. It assists in comprehending regarding society and choice of consumers.
Innovation has impact on practically every organisation. It consists of development in organisation strategy. In this case of Technical Note On Managing Inventories Periodic Review System Case Study Analysis it can be noted that companies are greatly investing for research and advancement. NASCAR ought to likewise work on its media rights policy with Turner Broadcasting System.
Due to the fact that every country has different legal terms and conditions, Legal plays an important function in every country. Technical Note On Managing Inventories Periodic Review System Case Study Analysis requires to be make sure that they protect their legal rights in every county so any business does not hurt to its legal rights.
Ecological elements are also crucial for each organisation. Since normally federal governments do not allow those business which can hurt to environment. These environmental aspects includes laws relating to pollution, environment change, safe garbage disposal, policies relating to insurance coverage etc. NASCAR needs to ensure that its vehicles are not creating contamination more than acceptable level.
7 P's of Marketing
The products of Technical Note On Managing Inventories Periodic Review System Case Study Analysis in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving rules for races and ad-space to corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).
Rates technique of NASCAR for its race events tickets is based upon the place and value of the racing events. Together with race occasions tickets, NASCAR likewise charge various service charge to its stakeholders and makes income. For instance it charged sanctioning fees of $1-2 million per race on average in 2005.
Promotional strategy of NASCAR is highly based upon its fan base. A strong fan base share its fandom with others and increase the number of viewers for NASCAR races.
NASCAR have its racing tracks in various cities in United States. The most important tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It attempts to perform its races in the majority of the cities in United States to understand nationwide popularity.
Nestle people method is comprised of supplying better experience to its audiences, its fan base and to all of its stakeholders. Individuals are an essential element of Technical Note On Managing Inventories Periodic Review System Case Study Help A marketing method as its events are the source of entertainment for crowd. Its individuals technique includes efforts to supply much better experience to its Fans, Race Drivers, Team, Occasion Organizers and so on, all of which come under individuals method of NASCAR.
Numerous company processes are required to conduct racing events in an efficient way. These processes consist of; correct schedule of time, arrangement for viewers, selling tickets, arrangement of area for sponsors, managing logistics and so on. These all procedures contribute I constructing NASCAR image, improving viewers experience and increasing fan base.
Most important physical proofs for the NASCAR includes the presence of its racing tracks, stock cars and racing events. Together with it, its retailing brand names including t-shirts, caps, goodies and so on, also act as a physical evidence for NASCAR.
Item Life Cycle Evaluation.
The racing events by NASCAR was presented on June 19, 1949. At the first phase competitors for NASCAR was low, as the rivals drove the vehicles similar to the cars and trucks driven by normal individuals.
The very first NASCAR based track, particularly the Darlington Raceway track, was initiated in 1950 in South Carolina. After the growth of racing tracks the company moved towards transmitting its races on tv in 1979.
In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he changed NASCAR from a regional Sport popular organization into one with international fan base. He started a new age of lucrative sponsorships and tv contracts for NASCAR.
The maturity period for NASCAR started with the efforts of William France Jr., with the business having wide range of revenue sources. The business has about 500 sponsors with relaying its events in about 150 countries. The company has large number of tracks in the majority of the cities of United States.
The significant causes of decrease consist of the financial crisis of 2008, which increased the cost of arriving at tracks for viewers due to increasing fuel costs, and the shifting of its fan base towards other sports.
The marketplace division of Technical Note On Managing Inventories Periodic Review System Case Study Solution can be divided into four sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of Technical Note On Managing Inventories Periodic Review System Case Analysis is based upon the geographical existence of its tracks in numerous states and cities in United States, and the tv broadcasting of its occasions in numerous nations. The company has 23 tracks in about 20 states of America and has television broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This large geographical division supplies the company regional in addition to worldwide fan base.
The market segmentation of NASCAR is also highlydiverse based upon the gender, earnings and age of the consumer. Its existing fan base is majorly consisted of male married fans with a typical age of 47 years and an income around $30-50 thousands. Presently NASCAR is trying to increase its target market to the young growing population and kinds. To increase the demographic section of its market NASCAR ought to modify its marketing methods to draw in more age groups and lower its prices to go into in the market section with a low typical earnings.( htt1).
The mental characteristics of the majority of the fans are rather comparable. NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to purchase tickets and see the races once in a week. 71% of them prefer to buy items with a NASCAR trademark name. They are quite extrovert and want to join other fans while racing. They desire quality racing with low cost at convenient area. Although Technical Note On Managing Inventories Periodic Review System Case Study Help has actually attempted to increase the quality of its racing by presenting stage racing, they also have actually attempted to lower prices and make the event easier by introducing live racing.
Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of watching the race live on the tv or by going in the occasions. Presently, the fans preference is towards seeing the race at home on television rather than going, as the client experience at NASCAR tracks is not beneficial as well as costly.
Among the prospective target market of Technical Note On Managing Inventories Periodic Review System Case Study Solution was Hispanics; the young and growing population of United States. The market segment has terrific possible for NASCAR as the population was growing at a higher rate and it was expected to become thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the section shows affinity with cars and truck culture, but require a more focused marketing towards inviting the section towards racing.
Kids are likewise one of the potential target market sector for NASCAR, as they are more linked socially than other groups. Car racing video games developed by Technical Note On Managing Inventories Periodic Review System Case Study Analysis can be a possible source of gaining attention of kids towards NASCAR track racing. NASCAR needs more attention towards personalizing and improving its digital functions to bring in the kids target market.
Generation Y target market consists of those who invested 5 times more resources on discretionary expenses i.e. buying tickets for racing occasions, than others. This huge expense makes the section potential for NASCAR marketing strategy of increasing its fan base. The market section is likewise simple to approach as 81% of the Y Generation consumer uses Facebook every day and the use is two times of using television and radio. The marketplace sector views sports as an affair, instead of adherence to sport. The marketplace sector considers NASCAR as an organization lacking in producing a multiculturalism atmosphere. Technical Note On Managing Inventories Periodic Review System Case Study Help should take various actions to enhance the experience of Generation Y consumers in its events.
5 C's of Marketing
5 C's of marketing assists in taking choices concerning marketing. These 5 C's requirements to be evaluated effectively for taking any marketing choice. These 5 C's stands for Environment, Company, Collaborators, Customers and Rivals.
It requires to make PESTLE analysis in order to understand climate or context in which NASCAR is working. PESTLE stands for political, financial, social, technical, legal and environmental and is mentioned above.
Technical Note On Managing Inventories Periodic Review System Case Study Solution is an auto racing company with having USP of high quality automobile racing with a global structure. Its sector is sports group and occasions.
Collaborations includes suppliers, providers and alliances of Technical Note On Managing Inventories Periodic Review System Case Study Analysis. It is collaborated with various racing groups which are participating in racing. It also worked together with Turners Sport for digital rights. NASCAR utilized to earn money check of around $15 million every year from Turner Sports. There are variety of cons behind this offer. NASCAR had to get approval from Turner Sport if it desire to develop its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of each and every single video which is shoot during race at track.
The consumer of Technical Note On Managing Inventories Periodic Review System Case Study Analysis are its audiences. They target customers with having age of 15-60 years. Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their children and produce generational commitment.
The direct rivals of NASCAR are Formula 1 and Moto GP. Teams usually represents sponsors in NASCAR and the medium of advertising is motorists. It can be said that drivers and race vehicles are rivals. If they got better chance in terms of prizes and television exposure, these chauffeurs can go against NASCAR.
1. Establishing and Keeping Facebook Page.
One of the prospective target markets sections for NASCAR is Hispanics which is the growing population section of U.S.A. however unfortunately NASCAR had actually been unable to draw in the this targeted sector. It should establish a Facebook page containing the info regarding the races and the places of tracks to make the customer useful about the core operations of NASCAR.
2. Developing and Updating Accounts of Secret Drivers.
Technical Note On Managing Inventories Periodic Review System Case Study Solution motorists has a low star power as compare to players of other sports. The bad contacts with fans result in less destination of viewers towards the racers and a low star power. Star power is an important aspect for drawing in viewers towards tracks and towards tv.
3. Developing New Games and enhancing present video games for kids.
Kids spent the majority of their time on playing video games and using smart devices. But regrettably, kids playing NASCARA have a worst experience of playing its games. As a result, they are less attracted towards the sport. In order to draw in these kids, NASCARA must enhance its present racing video games by presenting modification in the automobiles i.e. altering colours, selection of speed, introducing group racing in the game, utilizing better graphics related to the racing tracks and presenting numerous levels in the game. All these adjustments in the current video game would provide better experience to kids.
Together with it, NASCAR must also construct new video games connected to racing like kids racing with kids characters as chauffeurs, cartoon racing with racing in between different animation characters with a choice of picking the favourite cartoon character for the kids. These strategies would allow the business to bring in one of its prospective target sections.
4. Introducing multiculturalism at occasions.
Technical Note On Managing Inventories Periodic Review System Case Study Analysis events are consisted of fans with extremely couple of multiculturalism, due to expense of arrival in occasions, making it unattractive for the customers viewing sport events as get-togethers i.e. Generation Y clients. As the Generation Y customers are a prospective target market for NASCAR, for that reason the company ought to take particular measures to attract this prospective target market. It should embrace methods to attract the consumers far from the tracks area with various culture. The strategy to do so could be providing special discounts on tickets or free tickets to audiences coming from a specific distance or from another state. It would increase multiculturalism of the fans and would make Generation Y clients more pleased.
5. Improving Customer Experience at Tracks.
NASCAR ought to work on facilities and facilities at tracks because on the race day viewers got dissatisfied. Viewers have numerous expectations from Technical Note On Managing Inventories Periodic Review System Case Study Solution since in same market other companies are supplying better services than NASCAR. IF NASCAR don't work on this problem then its fans might shifted to its rivals.
Marketing Spending plan.
Marketing budget made on the basis of the above strategies for the period of 5 years from 2011 to 2015, reveals the expense related data for the marketing techniques. It can be seen that technique 5 of improving customer experience at tracks would need highest initial investment and expense and method 4 of introducing multiculturalism will need lowest preliminary financial investment with least expensive even more per year cost.
KEEP IN MIND: The worths about cost are presumed on rational basis due the lack of figures and facts related to cost in the event study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the external and internal elements of Technical Note On Managing Inventories Periodic Review System Case Study Analysis triggering the decline of television viewership rate and participation rate at tracks, the above marketing methods are advised to NASCAR to increase its fan base in long run. These strategies would deal with internal factors like bad customer experience at tracks, insufficient social networks marketing, incapable digital medias like video games, lack of culturalisms at tracks and so on, as well as with external elements like moving of fans towards other sports, demographical changes in America and changing domesticity styles.